Genting Singapore narrows net loss in Q2

The casino entrance of Resorts World Sentosa on June 19, 2014.
The casino entrance of Resorts World Sentosa on June 19, 2014. PHOTO: ST FILE

Casino operator Genting Singapore posted a smaller quarterly net loss than a year earlier, even though gaming revenue at its integrated resort in Sentosa dropped substantially.

Lower costs and administrative expenses helped lift its bottom line.

Its loss for the three months ended June 30 was $10.5 million, markedly better than the $16.9 million net loss recorded a year earlier, the firm reported yesterday.

Second-quarter revenue fell 17 per cent to $480.9 million.

Resorts World Sentosa (RWS) contributed the lion's share of turnover with $480.4 million, of which $331.9 million came from gaming.

Gaming revenue was down 23 per cent , largely because of weaker business in the VIP gaming segment and a challenging Asian gaming market.

  • AT A GLANCE

    REVENUE: $480.9 million (-17%)

    NET LOSS: $10.5 million (-38%)

    DIVIDEND: None

"The regional economic environment continues to be uncertain, and we continue to exercise caution with our VIP gaming business. Our regional premium mass and mass market remains steady," Genting Singapore said in its filing.

It said its non-gaming business continued to do well, with daily average visitation to various attractions topping 18,000 for the quarter. It said special events at the attractions drew over 1.6 million visitors.

Non-gaming revenue slipped 1 per cent for the quarter. Other revenue from services provided to leisure and hospitality-related business and investments rose 23 per cent.

Overall occupancy for hotels at the Sentosa integrated resort was 93 per cent, and 95 per cent for Genting Hotel Jurong.

The quarterly loss per share was 0.09 cent, against a loss per share of 0.14 cent in the previous year.

Net asset value was 59.3 cents as at June 30, down from 61 cents as at Dec 31 last year.

For the first half, the operator saw a slim net profit of $305,000, down 99 per cent year on year, while revenue fell 11 per cent to $1.1 billion.

Despite the challenging conditions, it said RWS continued to attract visitors from across the region. It is confident that the resort will continue to "play a leading role in Singapore's tourist appeal".

In May, RWS said it was partnering Alipay, China's largest mobile payment provider, to launch smart payments for Chinese visitors. Genting Singapore said yesterday that the collaboration seeks to use Alipay's brand presence and network in Greater China while building the business in key markets.

The operator noted it had implemented cost-efficiency initiatives that would continue into the next quarter, and it is "confident that these programmes will improve earnings in the following quarters".

The counter closed a cent up at 79.5 cents yesterday, before earnings were announced.

A version of this article appeared in the print edition of The Straits Times on August 05, 2016, with the headline 'Genting S'pore narrows net loss in Q2'. Print Edition | Subscribe